January salary of central employees to follow new pay hike: FinMin

New Delhi: Central government employees’ salaries for January will be in line with the new pay hike, a top official of the finance ministry today told The Sen Times on condition of anonymity.

NAC would go with the wish of FM Arun Jaitley.

The official said, “the government is planning to hike the basic salaries over 7th Pay Commission recommendations. If the cabinet gives the nod in this regard, it will be effected January 2018.”

He also added, “the fitment factor for basic pay will be raised to 3.00 times from 2.57 times as approved by the Cabinet on June 29.

If the 2.57 fitment factor is tinkered with fitment factor 3.00, then salary and pension in general for all central government employees will go up, he confirmed.

The government in June approved the 7th Pay Commission recommendations for its employees with higher minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh, which have been paid with arrears, effective from January 1, 2016 but central government employees’ unions had expressed their dissatisfaction over the inadequate hike in basic pay in accordance to the pay panel recommendations.

The employees’ unions have been demanding a minimum hike of basic pay Rs 26,000 and asked to raising fitment factor 3.68 times from 2.57 times.

So, the National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) has been formed in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

The meeting of National Anomaly Committee (NAC) is likely to be held in October for hike in basic pay with fitment factor 3.00. Earlier it was slated for the last week of September, the official told us.

After due hearing and by majority vote of all its stakeholders, the National Anomaly Committee may recommend to hike minimum pay Rs 21,000 from Rs 18,000.

“The minimum pay of central government employees Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders,” Finance minister Arun Jaitley had earlier said in a meeting.

Hence, the National Anomaly Committee would go with the wish of Arun Jaitley. So NAC is likely to send a report to the government to hike the basic salaries over 7th Pay Commission recommendations with fitment factor 3.00 instead of 2.57 for central government employees.